Initially Analysis Of The US <Foreign Corrupt Practices Act>

Wal-Mart’s Mexico unit handed out bribes to local officials since2005, while thescandal come to the fore, the United States Department of Justice get involved toinvestigates with the Foreign Corrupt Practices Act (FCPA). This paper will discussthe profession of the U.S. federal law FCPA, explore into the actually influencetowards the foreign legislation activities, and find out exactly how China can acquirethrough the Act to discipline the commercial corruption. Under the environment ofeconomic globalization, the FCPA which establish an internal control system plays animportant role in the enterprise operation and developed a totally new concept of theadministration in commercial bribery. However, for the reason the FCPA obey to theprinciple of long arm jurisdiction, China is one of the object in a position for the U.S.court to exercise jurisdiction. Acquaint with the background of the FCPA’s lawmaking,main clauses and the effect to China is very essential.Apart from the introduction, the main text is divided into four parts.The first chapter is introduction of the legislative background of theU.S.Foreign Corrupt Practices Act. The Act was signed into law in1977and wasimproved twice after being came into force. From the controversial issues to achievefull international recognized, the Act was considered a new method to eliminatingmultinational commercial bribery.The second chapter devote to interpretation content of the U.S.Foreign Corrupt Practices Act. The Act consists of two parts: Anti-Bribery Provisions&Record-Keeping and Accounting Provisions. The term of Anti-Bribery Provisionsdistinguishes the ambiguous phrases starting with subject, intention, object, andconduct. Besides, lists the exoneration clause of the Act. The Record-Keeping andAccounting Provisions requires establishment of company internal accountingmanagement system to ensure the authenticity and openness of the financialaccounting. In addition, this chapter will introduce the competent authorities and thebasis and source of extraterritorial jurisdiction of the Act.The third chapter analysis the reason for the U.S.Foreign Corrupt Practices Actgoing international and gaining ground rapidly. Moreover, this chapter begins with abrief and necessarily incomplete review of Convention on Combating Bribery ofForeign Public Officials in International Business Transactions (OECD Anti-BriberyConvention), the United Nations Convention against Corruption (UNCAC), and othertypical countries’ legislation against commercial bribery.In the last chapter, the author states the thinking about the U.S.Foreign CorruptPractices Act. This chapter will split into three parts to expound the regulation oftransnational commercial bribery between legal system and enterprise itself: First,social responsibility of the transnational corporations. Second, the Act’s virtualinfluence on China. Third, enlighten towards China for administration in commercialbribery. China as a place with high-rate occurrences of case involves the Act, study inthe Act not just contributing the legitimate business amongst Chinese and foreigncompany, but also working on the perfection of anti-corruption legislation activities inChina.